The acquisition of medical practices and hospitals by private equity (PE) firms is on the rise, with over 1,400 PE deals in healthcare in 2021, amounting to more than $208 billion. However, the aftermath of these acquisitions varies. For instance, after her emergency medicine group was bought by a staffing firm backed by a PE firm, Dr. Michelle Wiener from Detroit noted significant workflow changes, reduced staffing, and decreased morale.
On the other hand, Dr. Madan Kandula, an otolaryngologist from Milwaukee, found the changes after his practice’s partnership with a PE firm in 2020 to be positive, with improvements in various operational areas. The impact of PE acquisitions often depends on the physician’s position in the organization, their career stage, and their control over the deal. Some physicians see these partnerships as opportunities for growth and efficiency, while others believe they lead to increased patient costs and diminished care quality.